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A competitor jumps into water during the Tough Guy Mudathon in Perton, Britain. The event raises money for charity and challenges thousands of international competitors with a cross-country run followed by an assault course consisting of 200 obstacles including water, fire and tunnels. NIGEL RODDIS, EPA-EFE

Tough Mudder – which rose to fame with extreme endurance events featuring some participants getting electrical shocks or crawling under barbed wire – is splitting into two companies as its events face financial hurdles and increased competition.

The Brooklyn-based company announced Friday it would spin off its new fitness studio franchise called Tough Mudder Bootcamp into a separate private company.

The move comes after Tough Mudder's events business encountered obstacles of its own in North America, including competition from companies like Spartan Race. The company is negotiating with outside investors to obtain financing as it pursues the split.

The company has already secured "incremental capital, which is enough to steady the ship," founder and CEO Will Dean said Friday in an interview. "We definitely had some stressful months earlier this year."

Dean is relinquishing oversight of the live events side of the company to President Don Baxter. He will oversee the franchise fitness business and is pursuing opportunities unrelated to Tough Mudder.

"I don’t want to sound defeatist on the core business, but it is getting tricky, though," he said.

Tough Mudder's famous mud run and extreme obstacles generated significant publicity not long after the company was founded in 2010. The company has since diversified into more than 150 events, including less-intimidating 5K races to appeal to a broader spectrum of people.

More than 3 million people have participated in some form of Tough Mudder event.

Dean suggested the company may pursue a deal to evolve its events business, such as potentially "some kind of co-ownership arrangement."

"Most private-equity players think there’s going to be some kind of consolidation" in the industry, he said.

The company's fitness studio business is showing promise. Dean said Tough Mudder had signed up 70 franchisees in the U.S. and could do as many as 1,000 in the U.S. and another 1,000 abroad.